Friday, September 21, 2018

The Hypothesis Part 1

Marketing/Sales for Smaller Non-Commercial Gyms

The opportunity:
Who – Gym owners and staff of smaller gyms usually locally
What – Don’t have the time, staff, or expertise to market and sell their services.
Why – Small businesses don’t have a blueprint on how to grow their business, they are entrepreneurs and are learning as they go.

Testing the Who – All businesses have this need especially gyms. The bigger gym names have a lot of time and money invested in sales and marketing and that is why they have made a name for themselves. The reason I believe the opportunity is greater with smaller local gyms is because the process won’t be as long and intensive because we are not dealing with a big corporation. Small gym owners want to focus more on their business and providing value and not so much on getting new customers and that is why this need is there. 
Testing the What – I think some Gyms might be content being small and are not looking to grow so that might be an obstacle. Also, there might be other gyms that already have a process they like, maybe not as successful but it’s one they know and like. Also, a lot of the staff at these local gyms are younger and don’t have the experience in sales and marketing. However, there is companies that provide this service already but not on a local scale but that might be another road bump.
Testing the Why – Again many of these smaller gyms have young staff that are inexperienced, and the owners don’t have the time or money to train them. Many of these smaller gyms are run by the owner and they make all the decisions, so they might not be very good at delegating and so some things don’t get done. These owners might not believe in marketing or selling their service, they might have the wrong mindset and just need to see good results.

Interviews:
One of the people I interviewed is a young college student working at a local CrossFit Gym. She is a full-time student and works about 15 – 20 hours a week coaching and doing personal training. She feels like there is not enough time to focus on her clients, school, and also helping in recruiting new members. Sometimes it becomes more of a hassle and headache to take on some of those responsibilities even though she says the owner does most of it. As far as what she does to recruit new people to her gym she says she just invites her friends and people she knows but she doesn’t know much about the process from there.

I also interviewed a coach at small weightlifting gym who Is looking to start a gym of his own. He says the main problem he foresees is not knowing what “marketing strategy” is best and what to spend money on. Will it provide the results I need, Or will I just be wasting my money, are some of the questions he posed. He also said that starting off he would envision himself doing most of the work and eventually delegating to staff. 

One local business owner said that it might be difficult because there are marketing services already out there that are “proven”. They are pricey but if an owner is serious about sales and growing their gym then he says it would be easier to go with the established service. When asked who would do all the follow-up and meeting with clients etc., he did say it would be him. He prefers to meet with those that will join his business beforehand but does agree that takes up a lot of time.

The others I interviewed shared most of the same insights, but they did ask me a lot of questions as far as the service I am offering. How I would go about it, what would it entail, etc. They seemed interested in the idea but also had their doubts.

Summary:
This is a need that every business has, and I think is something many smaller businesses are desperate for. There are lots of obstacles I was able to learn about. For example, I did not know many of the companies that offer similar services. Also, these smaller gyms rely heavily on word of mouth and they often do what other smaller businesses have done in the past so getting my foot in the door might be very difficult. I was able to see how much work some of these owners and staff do, like I said they don’t have a blueprint, so the business is run by themselves and if something doesn’t get done then that’s it no one else will do it. I think the opportunity for a local marketing service is still there, but it will take some tweaking and convincing.

5 comments:

  1. Hello Lucas,

    A question I have is, do small gym owners want to expand and grow? I see a big difference between the small gym owner and the franchise gyms. The gym owner needs to be selective in who joins their gym, whereas a franchise gym wants to add as many members as possible. The franchise gyms do what they call overbooking. This is where they have many more members than they could ever hold at one time and they do not care about overcrowding, because their facilities are so large, the members come at different times, and many do not come at all. Also, they have another branch in the next town over if you don’t like the crowed, in town gym and they are open long hours, weekends and holidays in some cases. Advertising for small gyms may be a need if they are struggling or want to grow, however, I would suggest that most good smaller gyms need no advertising, they get the best customers through word of mouth.

    Tony Elam

    ReplyDelete
    Replies
    1. Tony,
      This comment will help a lot with next assignment haha thank you. I agree some gyms might not want to grow as much as franchise gyms but they all usually have a target number of customers they'd like. I do think there is some gyms that might not want to grow at all but I can only think of a really small few. plus in towns like Gainesville where students are coming and going I feel like gyms have to stay on their toes because during summer break half of their customers could leave or move.

      Lucas

      Delete
  2. Hey Lucas,

    Some small businesses don't want to expand or grow their market, it can be for many reasons such as they only want to provide the good for their community. I think a market to consider is expanding the market for smaller gyms that have basketball team that don't get publicity. I feel the reason why some players make to college or the NBA is because they had a great support system and a lot of show in their younger days. Depending on which gyms you decide to work with, I think pitching an opportunity such as that will get a lot of gyms excited.

    ReplyDelete
  3. Wisnov,

    I believe Lucas is talking about weightlifting and CrossFit gyms not basketball gyms.

    Tony

    ReplyDelete
  4. Hi Lucas,

    this was an interesting opportunity to read about because I never really gave the marketing side of the smaller, local gyms any thought. I can finally acknowledge how much more attention and customers the larger corporate gyms receive due to people trusting that they have the right machines and necessary knowledge to get them into the best possible shape. I want to say that that is why I ended up joining the Youfit close by instead of going to a local gym. Although I believe targeting these local gyms is a bit too specific and limits your options to only a couple gyms, it could definitely succeed.

    Roberto

    ReplyDelete